Lender Changed Mortgage Provisions

Expert, localized Los Angeles answers provided by Heather Roy

Lender Changed Mortgage Provisions
	At the closing of my seller, the buyer found that the Mortgage Company changed her mortgage from an interest only to a Principle and Interest Loan costing $500. a month more than she was quoted . The Mortgage Broker assured us that the Buyer had a 775 Credit Score and an excellent salary and was qualified for this loan of 100% financing. She did not close because she couldn't afford the loan. Leaving my Seller with a lot of expenses and her home not sold. Who is responsible for this Mortgage Companies mess?

	I haven't seen the documents involved, particulary whatever the mortgage broker and/or mortgage lender provided the buyer before the closing. I haven't seen the purchase contract, and I don't know just how the buyer's mortgage contingency was worded. All of that would make a difference. Perhaps small claims court would provide an inexpensive simple way for the seller to find out whether a judge thinks the buyer, mortgage broker or mortgage lender is responsible for the seller's expenses. It's adviseable first to contact a real estate lawyer for advice on preenting the case in small claims court. Or if the seller wants to seriously sue the buyer for defaulting, of course a lawyer must be consulted.
	Edith Originally published on June 25, 2007

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